The following accounting pronouncements did not have a material impact on the Company’s consolidated financial statements:

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ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220)” (“ASU 2018-02”)

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In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which outlines a single comprehensive model for entities to use in accounting for revenue from contracts with customers. The standard superseded most current revenue recognition guidance.

The Company adopted the new guidance on November 1, 2018 and applied the standard to all of its contracts using the modified retrospective approach. Under this method, the Company must recognize the cumulative effect of the changes in retained earnings on the date of adoption. The Company has determined the adoption of ASU 2014-09 did not have a material impact on its financial statements at the date of adoption. Accordingly, no cumulative effect adjustment to retained earnings was required and there are no other financial statement line items that were impacted by the adoption.

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In February 2016, FASB issued ASU 2016-02, “Leases” (Topic 842). Topic 842 is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company will be required to adopt ASU 2016-02, and the related amendments, beginning November 1, 2019.

The Company is currently evaluating its lease population to assess the effect of the new guidance on the Company’s consolidated financial statements. It is also focused on changing its policies, business processes, internal controls, and disclosures to support the Company’s implementation and compliance with Topic 842. The Company plans to adopt the new standard using the optional transition method provided by accounting pronouncement, ASU No. 2018-11, through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. While the Company continues to make progress on its implementation and compliance with the requirements of the new standard, the Company is still evaluating the impact of the adoption on its consolidated financial statements.